Ecos India Mobility & Hospitality Ltd Management Discussions

Forward-looking statement

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Company?s objectives, expectations or predictions may be forward-looking within the meaning of applicable securities laws and regulations. These Forward-looking statements are based on certain assumptions and expectations regarding future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company?s operations include changes in government regulations, tax laws, economic developments within the country and such other factors within India and globally. The financial statements are prepared as per the IND AS guidelines and comply with the applicable Accounting Standards notified under Section 211(3C) of the Act read with the Companies (Accounting Standards) Rules, 2015. The management of Ecos (India) Mobility & Hospitality Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect, in a true and fair manner, the state of affairs and profit for the year. The following discussions on our financial condition and result of operations should be read together with our audited consolidated financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", "Ecos" are to Ecos (India) Mobility & Hospitality Limited.

The global macroeconomic trajectory for CY2025 remains subdued, with real GDP growth estimates converging between 2.7% and 3.3%, underscoring a fragile and uneven recovery amid escalating trade frictions and heightened policy uncertainty. Consensus forecasts reflect the following:

• The World Bank projects global growth at 2.7%, flat versus CY2024, highlighting insufficient momentum to reverse structural economic scarring in frontier and low-income economies.

• The IMF, while retaining its estimate at 3.3%, reiterates the prevalence of downside risks emanating from protectionist trade policies, cross-border investment restrictions, and geopolitical fragmentation.

• Morgan Stanley anticipates a moderation to 2.9%, citing adverse impacts from U.S. tariff escalations, cyclical softness in global demand, and tighter financial conditions.

• The OECD warns of a deceleration in growth, attributing this to elevated trade costs, deglobalization trends, and macroprudential policy ambiguity. The current forecast represents a downward revision from the January 2025 baseline of 3.3% (IMF), primarily due to the amplification of trade distortions and rising cross-border policy divergence. Notably, advanced economies are expected to witness protracted disinflationary pressures and below-trend output expansion. Conversely, emerging and developing Asia remains the principal driver of global output growth, underpinned by resilient domestic demand, sustained capital formation, and demographic tailwinds. However, the medium-term growth potential remains constrained by entrenched structural impediments, including subdued total factor productivity (TFP) growth, unfavorable dependency ratios, and limited fiscal space in several economies.

In aggregate, the global economy appears to be entering a phase of low-growth normalization, with the balance of risks skewed to the downside, warranting cautious policy calibration and vigilant monitoring of exogenous shocks.

India remains the fastest-growing major economy in CY2025, with the IMF forecasting 6.2% GDP growth and the Reserve Bank of India projecting 6.5% for FY2025 , driven by strong domestic consumption, public capital expenditure, and a broad-based recovery in services.

• Urbanization: India?s urban population is expected to rise from 532.8 million in 2024 to 542.7 million in 2025, representing 37.1% of the total population .

• Income Growth: GDP per capita is projected to reach USD 2,880 in 2025 , boosting discretionary spending and demand for organized mobility solutions.

• Infrastructure Push: Programmes like Gati Shakti, Smart Cities Mission, and a record INR 11 lakh crore capital expenditure in the Union Budget will enhance transport networks, improving efficiency and connectivity. The sustained expansion of Tier-2 and Tier-3 cities—fueled by digital penetration, infrastructure funding (Urban Infrastructure Development Fund), and lower operating costs—is expected to decentralize corporate operations and create significant demand for structured employee transport and chauffeur-driven rental services.

(Source: Frost & Sullivan Report)

The global corporate mobility (including ETS and CCR) market, is poised for steady growth. A projected CAGR of 9.6% from CY2023 to CY2030 indicates a promising future. However, the two segments within this market are experiencing different growth trajectories. Employee transportation service segment, driven by factors like economic recovery, hybrid work models, and office re-openings, is expected to post a healthy growth. With an estimated revenue of $32.4 billion in CY2023 and a projected CAGR of 8.2% until CY2030, employee transportation service is anticipated to reach $56.4 billion by the end of the decade. Conversely, the corporate car rental market, which includes airport transfers is estimated at $54.0 billion in CY2023, significantly lower than pre-pandemic levels. However, with a projected CAGR of 10.4% aligned with the anticipated growth in business travel, the CCR market is expected to witness a healthy growth and reach $107.7 billion by CY2030. Advanced economies face prolonged disinflation and below-trend growth, while emerging Asia remains the main driver of global expansion, supported by resilient domestic demand and capital investment. However, medium-term potential is capped by productivity stagnation and fiscal constraints in several markets. For the mobility industry, this mixed global outlook underscores the importance of targeting growth in resilient, consumption-led markets such as India and select emerging economies. India is poised to lead the global corporate mobility market in terms of growth, with market set to double by 2030, exceeding Rs. 51,92,400 crore (US$ 600 billion).

Tier 2 & 3 city expansion: By CY2028, Indias Tier 2 and Tier 3 cities are projected to host 57% of the urban workforce. Although Tier 1 cities currently contribute significantly to corporate mobility revenue, mobility providers are aiming to capitalize on these smaller cities as additional revenue sources. The expansion of ITES and increasing business travel needs correlate directly growth in corporate mobility. Global expansion: Over the last decade, IT and ITES companies have been expanding their operations into countries such as the Philippines, South Africa, Romania, and the Middle East (especially within construction firms). This expansion has driven a growing demand for corporate mobility. Indian companies, especially those with organized structures and the necessary expertise, have a significant opportunity to quickly establish themselves in these regions. Embracing Technology for efficiency: Investing in technology and digital platforms presents a unique opportunity for corporate mobility providers. By doing so, they can enhance their service ecosystem, leverage data for informed decision-making, improve efficiency, and attain greater autonomy. This approach contrasts with reliance on third-party technology providers, which could potentially exploit shared data to exert control over mobility providers. Huge expansion of GCCs in India: Indias strong IT sector and cost-effective workforce are fueling the growth of Global Capability Centers (GCCs). The number of GCCs is expected to rise from 1580 in CY2023 to 2400 by CY2030 . Government policies promoting R&D and innovation hubs in key sectors like IT, electronics, and EVs further strengthen this growth. Additionally, development of GCC clusters in Tier 2 & 3 cities like Hosur and Nashik complements established centers in Pune and Bengaluru. This in turn is leading to higher demand for quality employee transport from these GCCs. Increased Airport Connectivity Fuels Demand for Chauffeur Driven Mobility: Indias booming air travel sector, with a growing network of airports, creates opportunities for corporate mobility solutions. Businesses will require efficient chauffeur driven mobility options to connect employees with these expanding air hubs, driving demand for corporate mobility to bridge first and last-mile gaps. Business Travel to Soar: Business travel expenditure in India surged by 24.7% last year, with expectations for a full recovery to pre-Covid levels by CY2025 and a further increase to 120% by CY2027 , as indicated by the Global Business Travel Association. This underscores a substantial potential for corporate mobility in India. Improved Road Networks Drive Ground Travel: Investments by the government in road infrastructure projects, such as the National Infrastructure Pipeline, offer substantial prospects for corporate mobility solutions. Improved roads lead to increased road passenger traffic, shifting short trips from air travel to road transport. Formalization Fuels Growth: The Indian corporate mobility sector is transitioning from unorganized local players to organized service providers. This shift is driven by companies growing needs for reliability, scalability (PAN-India operations), and operational efficiency. Organized players, with centralized management, technology adoption, and safety protocols, are well-positioned to address these demands, fueling significant growth opportunities for established corporate mobility providers.

The corporate mobility segment comprising Employee Transportation Services (ETS) and Corporate Car Rentals (CCR) is projected to grow at 11.06% CAGR from INR 89,590 crore in 2023 to INR 1.105 trillion in 2025.

Market Structure:

• Organized Players: around 20% market share, leveraging technology, safety protocols, and national reach.

• Unorganized Players: Around 80% share, mainly local operators with limited scalability.

• The sector is steadily formalizing as corporates consolidate vendors, demand standardized SLAs, and integrate mobility tech platforms. Key Growth Drivers:

• Return to Office: Resumption of in-office work has revived demand for structured commuting solutions.

• Employee Safety & Retention: Corporates priorities safe, reliable transport to boost workforce satisfaction.

• Business Travel Recovery: Domestic air traffic growth and increased corporate events drive CCR demand.

• Tier-2/Tier-3 Expansion: Decentralization of corporate hubs increases regional transport requirements.

• Premiumisation: Shift towards high-quality, chauffeur-driven services with advanced safety and comfort features.

• Market Consolidation: due to inconsistent service quality in the unorganized segment, corporates are increasingly consolidating vendors towards tech-enabled, pan-India organized players such as Eco Mobility Key Risks and Restraints/Challenges

• Operational Challenges: Managing a large fleet of vehicles, ensuring maintenance, and complying with complex regulations present hurdles in achieving efficiency and controlling costs within the corporate mobility sector.

• Driver Management: Recruiting, training, and retaining reliable drivers is crucial but challenging, directly impacting service quality and safety standards.

Eco Mobility (Ecos India Mobility & Hospitality Ltd.) is India?s largest chauffeur-driven mobility company, operating across two core segments Corporate Car Rentals (CCR) and Employee Transportation Services (ETS). With services in over 110 cities nationwide and partnerships in more than 30 countries, the company manages an asset-light fleet exceeding 15,150 vehicles. This includes economy to luxury cars, premium coaches, and specialty vehicles, enabling tailored solutions for a diverse corporate clientele. In FY2025, Eco Mobility completed 4.04 million trips (consolidated), serving over 45 Fortune 500 and 65 BSE 500 companies across IT/ITES, GCCs, BFSI, healthcare, manufacturing, and e-commerce sectors. More than 90% of the fleet is sourced from vendor partners, ensuring scalability, operational flexibility, and strong free cash flow generation. Following its successful 600 crore IPO in 2024, Eco Mobility remains net cash positive, with promoters holding approximately 67.7% stake. Recognized for operational excellence, technology-driven solutions, and customer loyalty, Eco Mobility has received multiple national and industry awards. Its proprietary platforms — RentNet, CabDrive Pro, and upcoming tech driven service tools — driving scalability, client stickiness and efficiencies.

Chauffeured Car Rentals (CCR): Provides B2B2C mobility solutions for corporate travel, including airport transfers, events, and outstation trips, with options across premium, economy, and luxury vehicles. Services are supported by online booking platforms (e.g., CabDrive Pro) and real-time tracking for enhanced customer experience. Employee Transportation Services (ETS): Delivers structured commuting solutions for employees, particularly in GCCs, with dedicated on-site supervision to ensure safety, compliance, and operational efficiency.

In FY25, revenue from operations grew 17.96% year-on-year to 6,539.64 million, with both segments delivering growth. CCR posted double-digit gains, supported by higher adoption of premium corporate travel and increased wallet share from existing clients. ETS maintained its market leadership, with growth driven by new contracts in GCC-heavy sectors. EBITDA: 923.88 million in FY25, up 2.69% from 899.63 million in FY24. PBT: 794.60 million, up 2.55% year-on-year (excluding one-time property sale income of 48.31 million in FY24). ROCE: 35.78%, reflecting efficient capital deployment in an asset-light model. Cash & Investments: 1,161 million, providing ample scope for reinvestment into growth initiatives. Key Financial Ratios — Significant Changes (=25%)

In FY25, trip volumes rose 25% to 4.04 million, supported by 188 new client acquisitions and higher CCR contribution (share up from 37% to 45% from Q1FY 25 to Q4 FY25). This service mix shift supported margin stability despite competitive pricing. Over 60% of revenues came from clients with relationships exceeding five years, underpinning predictable cash flows. Segment-wise Performance

Market & Operational: The Company has a significant dependence on a concentrated client base and a vendor-sourced fleet, with approximately 94% of the fleet being sourced from third-party vendors in FY25. To mitigate the risk the Company is actively pursuing client diversification initiatives, enhancing long-term contracts with key clients, and broadening its vendor network to reduce dependency on a limited pool of partners. Financial: fluctuations in fuel price, the upkeep of vehicles including repair and maintenance, increase in price of vehicles, increase in insurance premiums, depreciation of vehicles, compliance with local and state regulations or competitive pricing pressure could result in an increase in cost incurred towards vendors or cost incurred towards operation of vehicles owned by us. An increase in such cost may have an adverse impact on our business, financial conditions and results of operations. The Company adopts fuel escalation clauses in contracts to mitigate the risk. Competitive: The chauffeur driven mobility provider industry is highly competitive and fragmented, with well-established and low-cost alternatives that have been available for decades, low barriers to entry, low switching costs, and well-capitalized competitors in nearly every major geographic region. We believe that price is one of the primary competitive factors in the chauffeur driven mobility provider industry. Our competitors include a variety of companies ranging from large, multinational corporations to small, local businesses in various geographic markets. Our competitors, some of whom may have access to substantial capital, may seek to compete aggressively on pricing. To the extent we match our competitor?s downward pricing, it could have a material impact on our revenue from operations and business. To mitigate the risk the Company differentiates itself through service quality, compliance, and technology-driven solutions, while also engaging in continuous cost optimization to remain competitive. Technology: Business continuity depends on reliable digital platforms, exposing the Company to the risks of system outages, cyber-attacks, and data breaches. The Company maintains robust IT infrastructure to safeguard against technology failures. Environmental: The accelerating push for Electric Vehicle (EV) adoption under regulatory and market pressures requires timely fleet transition, which entails high upfront costs and infrastructure dependencies. The Company has initiated progressive EV fleet expansion, forged strategic partnerships with EV providers, and is working closely with clients to align service offerings with sustainability commitments. Reputational: Any safety incidents or service lapses could impact client confidence and brand reputation. We rely on our employees and contracted chauffeurs to carry out our operations and services. We are exposed to risk of misconduct by our employees and contracted chauffeurs. In order to manage our third party service providers, we undertake entry level screening for drivers cum owners, ensuring alignment with our Company?s brand values through our engagement programs. We also have a learning and development team that consistently works with the chauffeurs to ensure that they adhere to the quality standards set by our clients/customers

• Tier-2/Tier-3 City Growth

India?s urbanization is shifting beyond Tier-1 hubs, with ~57% of the country?s urban workforce projected to be located in Tier-2 and Tier-3 cities by 2028. This migration is driven by rising infrastructure development, cost advantages, and the expansion of corporate footprints into smaller cities. For organized mobility and enterprise service providers, this creates a large untapped demand pool, offering opportunities to build early market leadership while benefiting from lower operating costs and better workforce availability compared to metro locations.

• Global Expansion

ECO has established strong credibility in managing large-scale, cost-efficient, and technology-driven operations for domestic corporates. This positions them well to extend services to global GCC hubs in regions such as Southeast Asia, the Middle East, and Eastern Europe. Expanding internationally diversifies revenue streams, reduces dependency on India-centric demand cycles, and enhances brand visibility as a global solutions partner. Moreover, Indian firms can leverage their proven execution capabilities to offer bundled services across markets.

• Tech & Data Advantage

Proprietary digital platforms, tech-driven analytics, and integrated mobility management systems are becoming key differentiators. These tools not only improve fleet utilization and cost efficiency but also provide corporates with real-time visibility, predictive insights, and customizable reporting. The growing enterprise focus on data-driven decision-making gives organized, tech-led players a structural advantage over fragmented, unorganized providers, helping them capture premium clients and long-term contracts.

• GCC Boom

The Global Capability Center (GCC) industry in India is expected to grow substantially, with the number of centers rising from ~1,950 in 2025 to ~2,400–2,550 by 2030. This reflects multinational companies? increasing reliance on India for talent, technology development, and business process support. As GCCs expand across Tier-1 and Tier-2 cities, the need for reliable mobility, workforce logistics, and tech-enabled infrastructure support will grow in parallel. Service providers aligned with this ecosystem stand to benefit from sustained, long-term demand visibility.

• Business Travel Upswing

Corporate travel demand, which was disrupted during COVID-19, is projected to not only recover but surpass pre-pandemic levels by CY2027. The rebound in cross-border engagements, MICE (Meetings, Incentives, Conferences, and Exhibitions) activity, and client-facing travel is expected to significantly boost demand for business mobility solutions. Companies will increasingly prioritize reliable, technology-enabled, and sustainable travel providers to meet their evolving workforce needs. This creates an opportunity for organized players to capture a larger share of enterprise travel spend.

• Green Mobility

The transition towards sustainability is accelerating, supported by government incentives, policy mandates, and corporate ESG commitments. Fleet electrification is gaining momentum, with enterprises seeking to shift towards EVs to meet carbon-reduction targets while also benefiting from long-term cost savings. Organized mobility providers that can invest in EV infrastructure, charging ecosystems, and digital integration will be well-positioned to lead this transformation and strengthen client partnerships by supporting their decarbonization journeys.

The company maintains robust systems to ensure operational efficiency, financial accuracy, and compliance. Controls are regularly reviewed and strengthened to address emerging risks, including cybersecurity and regulatory changes. FY25 audits revealed no material weaknesses.

During the financial year FY 2024–25, Eco Mobility continued to strengthen its human capital base by expanding its workforce, enhancing skills, and fostering engagement. We hired 324 employees, raising headcount to 954 across 18 locations in India as on 31st March, 2025. Training programs reached 916 employees, covering leadership, technical, and chauffeur-specific skills. Engagement and wellness initiatives included recognition events, health check-ups and road safety campaigns. For chauffeurs, specialized programs such as White Glove Training, Defensive Driving Training, Fire Fighting, First Aid & CPR Training, together in Diversity, and the SMART Chauffeur Program were conducted. Company maintained a strong focus on engagement through recognition programs, wellness activities, and diversity initiatives. Signature events included Laughter Yoga sessions, Eye Check-ups, Dental Check-ups, R&R ceremonies, Coffee with Chief Operating Officer, and the Li?l Brand Ambassador Program and organized a month-long Road Safety Campaign to spread awareness on safe driving practices among employees, chauffeurs, and the community Voluntary attrition reduced significantly from 36.86% in FY 2023–24 to 21.43% in FY 2024–25, reflecting our strengthened focus on a positive work culture, career development pathways, and robust engagement initiatives. The workforce comprised 93.68% male and 6.32% female employees, with women holding 33.33% of leadership roles, underscoring progress in gender diversity. Through capability building, recognition, and inclusion-focused initiatives, Eco Mobility advanced employee satisfaction, strengthened leadership pipelines, and enhanced operational efficiency—reinforcing its commitment to a high-performance, collaborative, and inclusive workplace.

At Eco Mobility, sustainability is not an afterthought—it is a strategic pillar. Guided by our ISO 14001:2015 certified Environmental Management System, we integrate environmental stewardship and community well-being into our core operations, ensuring that every initiative delivers measurable, long-term impact. During the year, the Company implemented a range of impactful initiatives that address both environmental preservation and social well-being:

Greener Horizons – Restoring Nature, Enriching Lives

• Miyawaki Micro-Forest, Ghaziabad – A dense, fast-growing green cover enhancing biodiversity, improving air quality, and sequestering carbon.

• Highway Green Belt Development, Gurugram – Plantation drives along NH Ghamroz Plaza improving soil health, supporting flora & fauna, and expanding urban green zones. Clean Energy for a Cleaner Future

• Solar Transition – Installation of solar panels at a key branch office, reducing reliance on fossil fuels, cutting greenhouse gas emissions, and aligning with our carbon footprint reduction targets. Empowering Communities – Health, Education & Access

• Life on Wheels – Donation of two fully equipped ambulances to AIIMS, New Delhi, strengthening emergency healthcare infrastructure.

• Education on the Move – Provision of a school bus to a rural school in Uttarakhand, enabling safe, reliable access to education.

• Wellness for Her – Funding and facilitating cervical cancer vaccinations for schoolgirls, advancing preventive healthcare and women?s health awareness.

Every project reflects our dual commitment to protect the planet and uplift the communities we serve creating value that goes far beyond business outcomes and contributing to national priorities and global sustainability goals.

The company aims to lead the transformation of corporate mobility in India into an organized, tech-enabled, and client-centric ecosystem. With deep client relationships, a disciplined growth strategy, and a scalable operational model, Eco Mobility is positioned to capture greater share of the 75–85% unorganized market. Expansion into Tier-II cities, investment in tech-driven fleet optimization will remain strategic priorities.